“He has left the fiscal balance on a very good trend and I think he did an obviously tremendous job to reinforce Canada AAA rating, and to reinforce the credibility of the fiscal objectives that were set post-recession.”

“We cannot forget his contribution prior to the crisis, where he … certainly contributed to economic growth over all these years.”

“Now, it’s the end of a long, I would say good fiscal era under Flaherty. He’s certainly one of the finance ministers – I’m also think about Paul Martin – that really had a major impact on public finance.”

“It remains to be seen what will be the transition, but I think the transition will be quite smooth, in the sense that the budget was just released about a month ago and the plan is well on track.”

“So regardless of who will take the lead, I think it will be easily manageable given the contribution of Flaherty and the way he leaves things.”

“The first name that came into mind (to succeed) was Tony Clement.”

MARK CHANDLER, HEAD OF CANADIAN FIXED INCOME AND CURRENCY STRATEGY, ROYAL BANK OF CANADA:

“We know nothing that would suggest that there’s any schism between himself and anybody else in the party on policy, so I would say that this is not policy related. There’s nothing in the statement that would suggest so.”

“What’s left open still is, if the Conservatives are to secure another victory once they balance the budget, the question that remains open is how is it going to be spent? So whoever’s coming in will be, definitely, a big part of that discussion.”

DOUG PORTER, CHIEF ECONOMIST, BMO CAPITAL MARKETS:

“It’s not a complete shock, the only question was over the timing. I think the conventional wisdom was he’d hang in there for another budget to show he had balanced the books, but obviously he didn’t, he decided now was the time.”

“I would say continuity (is what the market wants). Whoever steps into the role, they don’t have to be a carbon copy of Mr. Flaherty, nobody could be, but in terms of the broad policy thrust I think it was appropriate from a policy perspective, and most people would like to see that continue.”

“He was at the tiller during what was arguably the most tumultuous period for the Canadian economy in the last 50 years, and helped guide the country through in relatively good shape.”

“There might be a little ripple (in the markets), notably in the Canadian dollar, which already took a big step back because of other remarks by another Ottawa policymaker. I don’t think there is a major implication.”

“I think this gives the next finance minister enough time, the next federal election is a little bit more than 18 months away. That’s a long time in politics. It would give the next finance minister a budget and the fall update as well, so I think they will have time to properly plant their feet.”

AVERY SHENFELD, CHIEF ECONOMIST, CIBC WORLD MARKETS

“It’s an opportunity for him to make a graceful exit, he’s apparently got some opportunities in private sector. I don’t see this as indicating any significant change in Canadian fiscal policy.”

“The only issue is that there was obviously some division within cabinet over whether income splitting would be the best tax cut to offer pre-election, and he was on the side of looking at other options. So we’ll see if that tilts the balance one way or the other.”